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Krita Foundation in Trouble

krita.org

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Re: Krita Foundation in Trouble

#61

Post by gcp »

DangerousPie wrote: post #48

> The Foundation was created to be able to have Dmitry work full-time on Krita. Because we sell stuff, the tax inspector has determined that we’re a company, and should have paid VAT in the Netherlands over the work Dmitry has been doing in Russia. Even though there is no VAT in Russia on the kind of work Dmitry is doing. As someone who has dealt with VAT in the EU a bit this sounds really odd to me. Even if the insp…

No, you must pay VAT at the point of import if your supplier is outside the EU.

Not doing so would allow unfair competition from suppliers outside the EU. Note that for goods, these are import tariffs.

Re: Krita Foundation in Trouble

#62

Post by gcp »

DangerousPie wrote: post #58
vetinari wrote: post #52

Earlier quoted context omitted.

> Even if the inspector determines that VAT needs to be charged on these services, shouldn't it be Dmitry who is paying them, not the foundation? From the look of it, Dmitry is outside the EU, making the foundation the importer and thus responsible for the VAT.

I never heard of this. Is that actually a rule in the Netherlands? I don't think/hope it is in the UK at least.

This is EU wide so it would apply to the UK, for now.

Note that the rules for intra-EU B2B transfers may be different (deferred VAT).

Re: Krita Foundation in Trouble

#63

Post by KayEss »

DangerousPie wrote: post #53
KayEss wrote: post #37

Earlier quoted context omitted.

They think you should pay VAT on imported services? That sounds very fishy to me. I've never heard of such a thing (and I have been exporting into the EU for many years).

Really? I always need to charge/pay VAT on services. The only exception is if both are VAT-registered businesses in the EU (but in different member states), in which case you can charge 0% VAT.

We're talking about things imported to the EU from outside the EU. Do you really pay VAT in europe on services you buy in the US? Or in Asia?

Re: Krita Foundation in Trouble

#64

Post by asb »

DangerousPie wrote: post #48

> The Foundation was created to be able to have Dmitry work full-time on Krita. Because we sell stuff, the tax inspector has determined that we’re a company, and should have paid VAT in the Netherlands over the work Dmitry has been doing in Russia. Even though there is no VAT in Russia on the kind of work Dmitry is doing. As someone who has dealt with VAT in the EU a bit this sounds really odd to me. Even if the insp…

This is an understandable assumption, but it's actually not the way it works. I'm sure the Dutch tax authorities have equivalent documentation, but the UK description of the 'reverse charge' should explain the basic principle https://www.gov.uk/guidance/vat-imports-acquisitions-and-pur...

Re: Krita Foundation in Trouble

#65

Post by hennsen »

Cannot be loaded and seen. Can you put your text on some public blogging service instead of a weak small server that overloads when people on hackernews actually are interested on your thing?

Re: Krita Foundation in Trouble

#66

Post by KayEss »

Kiro wrote: post #57
varjag wrote: post #49

Earlier quoted context omitted.

You should, in most places of the world that have VAT. E.g. you pay VAT on inbound courier services like UPS, FedEx, atop of the duty on the goods they carry. (but not on outbound ones).

What do you mean? You pay VAT on imported goods. Not on imported services.

You might pay a customs duty on imported goods, but you don't pay VAT.

Re: Krita Foundation in Trouble

#67

Post by DangerousPie »

asb wrote: post #64
DangerousPie wrote: post #48

> The Foundation was created to be able to have Dmitry work full-time on Krita. Because we sell stuff, the tax inspector has determined that we’re a company, and should have paid VAT in the Netherlands over the work Dmitry has been doing in Russia. Even though there is no VAT in Russia on the kind of work Dmitry is doing. As someone who has dealt with VAT in the EU a bit this sounds really odd to me. Even if the insp…

This is an understandable assumption, but it's actually not the way it works. I'm sure the Dutch tax authorities have equivalent documentation, but the UK description of the 'reverse charge' should explain the basic principle https://www.gov.uk/guidance/vat-imports-acquisitions-and-pur...

Oh, I see! That makes sense then.

Re: Krita Foundation in Trouble

#68

Post by lima »

hennsen wrote: post #65

Cannot be loaded and seen. Can you put your text on some public blogging service instead of a weak small server that overloads when people on hackernews actually are interested on your thing?

Text only Google cache: https://webcache.googleusercontent.com/search?q=cache:https:...

Re: Krita Foundation in Trouble

#69

Post by [deleted] »

DangerousPie wrote: post #58
vetinari wrote: post #52

Earlier quoted context omitted.

> Even if the inspector determines that VAT needs to be charged on these services, shouldn't it be Dmitry who is paying them, not the foundation? From the look of it, Dmitry is outside the EU, making the foundation the importer and thus responsible for the VAT.

I never heard of this. Is that actually a rule in the Netherlands? I don't think/hope it is in the UK at least.

[deleted]

Re: Krita Foundation in Trouble

#70

Post by gcp »

Sujan wrote: post #54
DanBC wrote: post #33

Earlier quoted context omitted.

You say bad practices, but they got advice from a registered qualified professional in a complex area of tax law.

If this were the case, wouldn't that person be liable then?

They would need to prove they suffered loss (and an actual error!). That's not clear in this situation. Not paying taxes you were due isn't extra costs due to your accountant, although fines and interests may be.
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